Mitsubishi snaps up 20% stake in Olam for $1.53b

A Japanese JV is in the works.

Agribusiness giant Olam will welcome a new major shareholder after inking a $1.53b deal with Japan’s Mitsubishi Corporation.

The deal is made up of two transactions. First, Olam will issue 332.73 million new shares to Mitsubishi at $2.75 per share, raising $915m in new capital and representing 12% of Olam’s enlarged share capital.

Separately, Mitsubishi will also snap up 222.0 million secondary shares from the Kewalram Chanrai Group for $615m, representing 8% of Olam's enlarged share capital.

Temasek will remain Olam’s majority shareholder with a controlling 51.4% stake after the issuance of the new shares.

Olam and Mitsubishi are also in talks to form a joint venture in Japan in to distribute specific products in the Japanese market.

The two companies will form a Partnership Committee to evaluate and develop future strategic collaboration opportunities in various Olam platforms, and Mitsubishi will nominate up to two members to the Olam Board.